Tight economy takes bite out of tourism

(Crain's) -- A weak U.S. economy held down the number of leisure travelers visiting Chicago and Illinois last year, the state reported Monday.

The number of leisure travelers to the state last year declined 5% from 2006 to 68.1 million, according to figures from D. K. Shifflet & Associates, a Virginia-based market research firm.

Illinois last year hosted 89 million total domestic leisure and business travelers, down 2% from 2006's 91 million, when the state logged its second-highest total on record. The 2007 total does not include another 1.17 million overseas visitors to the state.

Chicago's tourist volume was flat in 2007 at 32.8 million, following a 13.4% increase from 2005 to 2006. But a nearly 9% increase in business travelers last year pushed up the city's overall traveler volume 2.2% over 2006, to 45.1 million people.

Officials blame the city's static tourist volume to a weakening U.S. economy and higher costs for fuel and other expenses that soaked up discretionary dollars.

"The economy has had some impact on leisure visitors," Dorothy Coyle, director of the Chicago Office of Tourism, said Monday following a briefing at the Blackstone Hotel.

However, Ms. Coyle predicts the abundance of low-cost tourist attractions will work in the city's favor as the sluggish economy persists into 2008. Chicago tourism marketing is emphasizing free or low-cost attractions for budget-conscious travelers this summer. Sites such as Millennium Park and free concerts in lakefront parks continue to be popular with tourists, she said.

"People who want to stretch their dollars can feel good about coming to Chicago," she said.

The falling value of the U.S. dollar has helped Chicago's popularity with foreign travelers. Last year, Chicago hosted 1.14 million overseas visitors, up 8% from 2006. The countries supplying the biggest increases: Britain, up 10%, and Germany, up 6%.